Everonn Education nose dives by 20% on the Bombay Stock Exchange. The news that P Kishore, the managing director was arrested on Tuesday for allegedly trying to bribe an Income Tax (I-T) official with Rs 50 lakh.

On a tip-off from sources, the I-T department conducted raids on Everonn Education. The which provides in-school education through internet. During a search operation on August 4, I-T officials found that Everonn Education had tried to conceal taxable income of Rs 116 crore.

Kishore allegedly was offering Rs 50 crore to a higher rung officials of the income-tax department to hide the taxable income of the company, but instead he was caught red-handed doing so.

The Income Tax department has booked Kishore under criminal conspiracy and it has also slapped relevant provisions of the Prevention of Corruption Act.

P. Kishore was arrested on Tuesday after market had closed, Everonn Education ended on Tuesday marginally down at Rs 439.30.

Chairman Jamshed. J. Irani resigned from the company. After which, Everonn informed the exchange that upon taking stock of the situation, the management has appointed Susha John, as the new chief executive officer (CEO). The powers of the managing director will be shifted to the CEO. The Board of Directors has also appointed two independent directors at Everonn Education to assist the CEO.

The statement said, “The company shall extend all co-operation to all concerned as necessary to clearly demonstrate its commitment and adherence to principled corporate governance."